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If you participate in an eligible VRS defined contribution plan, such as the defined contribution component of the Hybrid Retirement Plan or the Commonwealth of Virginia 457 Deferred Compensation Plan, you have control over how your money is invested.

To make informed decisions about your investments, learn the basics with three easy steps outlined in the Commonwealth of Virginia Defined Contribution Plans Investment Guide.

Step 1: Familiarize Yourself With Investment Terms and Options

Before developing your investment strategy, ask yourself:

• How much do I want to save and invest today?
• What are my financial goals?
• How long do I expect to hold investments for a specific goal? (This is called your time horizon.)
• What is my risk tolerance level?

Your answers will help with asset allocation, the process of assigning percentages of your investments to different categories such as stocks, bonds and cash equivalents, collectively known as asset classes.

Diversification is a risk-management technique that involves distributing your money among different securities, sectors, industries and strategies within several asset classes. You can further reduce risk by investing for the long term – leaving your money to grow and giving yourself a better chance of reaching your goals over time.

Step 2: Make Investment Selections That Align With Your Goals

VRS defined contribution plan investment options are organized into three paths for your convenience:

• Do-It-For-Me Path: Includes a series of target date funds that are premixed and already diversified. You select a fund based on your projected retirement date and individual needs.
• Help-Me-Do-It Path: Features a carefully selected menu of funds if you prefer to take a slightly more active role in investing.
• Do-It-Myself Path: Offers a self-directed brokerage account if you believe you are skilled and knowledgeable to manage investments without assistance. The brokerage account allows you to invest in mutual funds, exchange-traded funds and individual securities.

The path approach is flexible; you can mix and match within each one to fit your objectives, risk tolerance and investing style.

Step 3: Review Your Account

To view and manage your investment options, log in to Account Access. Periodically reevaluate your strategy and make any necessary adjustments.

Register to attend the Understanding Your Investment Options webinar to learn more about asset classes, diversification and the three investment paths. For personalized support, contact a DCP Specialist, register for a group seminar or attend a one-on-one consultation with a specialist. Check the Education tab on your plan’s website for scheduling.

NOTE VRS recently named Voya Financial as the third-party DCP record keeper, effective 2025. MissionSquare Retirement is the current record keeper and has served in this capacity since 2014. While some resources mentioned in this article may change under Voya Financial, your investment options will not. Read more.